In 2021, New York City passed a law requiring employers to include salary ranges for job advertisements. The law contained a number of ambiguities and gave employers little time to prepare for the May 15, 2022 effective date. As a result, several groups believed changes to the law were necessary before becoming effective.
The New York City Council heeded those concerns and, earlier this month, introduced a bill to amend the law, discussed in our prior Legal Alert. On April 28, 2022, the Council passed an amended version of the law, which makes several key changes to the original law. The amended law has been sent to Mayor Eric Adams, who is expected to sign it in the next few days.
The Amendments
Most notably, the amended version postpones the effective date to November 1, 2022. It also clarifies for employers that both hourly wage and salaried jobs are subject to the statute.
The amendment also eliminates the broad private right of action available under the original law. Under the revised version, only current employees may bring an action against their employer for non-compliance. Based on the change, applicants likely cannot file a private right of action for violations. However, the New York City Commission on Human Rights will still have authority to enforce violations applicable to applicants.
Further, under the amended law, first-time violators will not be subject to any monetary penalties, so long as they correct the violation within 30 days, presumably by updating the relevant job advertisement.
However, the amended version incorporates guidance from the New York City Commission on Human Rights regarding the applicability of the law to remote job positions. Specifically, the amended law provides that the salary disclosure requirement does not apply to positions that “cannot” or “will not” be performed, at least in part, in New York City. Stated differently, if any part of an advertised job can theoretically be performed in New York City, then the salary range for the position must be disclosed in the advertisement.
Next Steps for Covered Employers
Postponement of the law’s effective date gives employers an additional six months to prepare for its requirements. Employers should use the additional time to identify positions that can or will be performed in New York City. Employers should also identify salary ranges for every position fitting the definition and update any template job advertisements to ensure they include the required salary disclosures. Lastly, employers should train management and human resource employees on the law’s requirements.
If you have any questions, please contact the author of this Alert, Andrew Williamson, associate, at awilliamson@fordharrison.com, in our New York City office. Of course, you can also contact the FordHarrison attorney with whom you usually work.